Wrote an ITM diagonal spread on CELG today. This is like a covered call, but instead of buying the stock, I bought long dated deep in the money call, while over-writing with a shorter duration OTM call. It made sense to overwrite, despite recent uptrend, Money Flow buy signal and all the usual positive Chaikin metrics, because the stock is near overhead resistance. The stock has made a big move since the trading day began. BOT +2 DIAGONAL CELG 100 16 JUN 17/21 APR 17 115/130 CALL @11.61 CBOE. More on this strategy and to track results, go here.
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